Sygnia Direct Investment

Minimum contributions:

• Debit order of R500 p/m.

You may stop contributing at any time, with no penalty.

Advantages

• Easy access to your investment
• No set term
• Flexibility to invest in a wide variety of cost-effective index-tracking unit trusts and offshore funds

Conditions

• You may transfer your investment to another individual or legal entity, but this may activate Capital Gains Tax on your investment

Your Sygnia Direct Investment will be subject to the following taxes:

• Income tax on any interest income earned;
• Dividends Withholding Tax on any dividends earned; and
• Capital Gains Tax on any disposal of your investment.

The following administration fee applies depending on the investment funds that you have chosen:

* 0.35% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds below R2million.
** 0.15% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds above R2million.
*** 0.00% is levied on the proportionate value of Sygnia unit trust and ETF funds above R10million.

A separate safe custody fee of 0.03% (ex. VAT) per annum applicable to ETFs will be charged.

Note: We consider all your investments when assessing the R2 million and R10 million threshold, including your investments in External unit trusts, ETF’s and ETN’s. For fees relating to the underlying investment managers, please refer to the Sygnia Alchemy Funds document available on request or online at www.sygnia.co.za.

Investment management fees
These vary widely across the Sygnia fund range. For a detailed breakdown of fund-specific fees, please refer to the funds page.

Financial advisor fees
These are negotiable with your financial advisor within the following parameters:

Initial fee: On all products except for the Sygnia Tax Free Savings Account the maximum initial fee is 3%. On the TFSA it is a maximum of 1.5%.
Annual fee: Maximum of 1% per annum (excl. VAT).

If an initial fee in excess of 1.50% is deducted, the annual fee is limited to 0.50% per annum.

• Copy of South African green barcoded ID/ South African Smart ID card, birth certificate (if minor) or valid passport (if a foreign national).
• Proof of residential address not older than 3 months.
• Proof of bank details not older than 3 months.
• Proof of deposit/transfer into the relevant Sygnia bank account.
• If a unit transfer is required, please provide a recent statement of your current investment.

All Sygnia products named above and information provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information, but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate.

Any representation or opinion is provided for information purposes only. Collective Investment Schemes in securities (unit trusts or funds) are generally medium- to long-term investments. The value of participatory interests in a Collective Investment Scheme may go down as well as up, and past performance is not indicative of future performance.

The Sygnia Direct Investment Account offers a wide range of Sygnia and third-party unit trust funds and ETFs, giving you the flexibility to tailor an investment strategy to your individual goals.

You cannot invest directly with foreign currency, but you can invest your rands in our rand-denominated offshore unit trust funds and ETFs. Please refer to this link for our list of funds.

Withdrawals from a Sygnia Direct Investment Account are flexible and convenient. They are typically processed within 5–7 working days and may be subject to capital gains tax. There is a 32-business-day clearance period for debit orders and once-off collections.

As with any investments in unit trusts and ETFs, returns are not guaranteed. Investment performance is influenced by market conditions and the selected funds. As all investments involve risk, it is essential to align your investment choices with your risk appetite and long-term financial objectives.

The Sygnia Direct Investment Account does not allow for the nomination of beneficiaries. In the event of the account holder’s death, the death benefit is typically paid as a lump sum to the deceased’s estate. The executor of the estate is responsible for distributing the assets in accordance with your will (or, if no will exists, under the laws of intestate succession).

To ensure that your assets, including those held in your Sygnia Direct Investment Account, are distributed according to your wishes, it is important to have a valid and up-to-date will in place.